The company’s range of deposits within the Wa Gold Project in northwest Ghana have a combined gold resource of about 2.1 million ounces.

While the enterprise value/resource ounce valuation metric is often useful in identifying companies that are undervalued within the resources sector, it isn’t a silver bullet.

Consequently, to make your own call as to whether Azumah is undervalued, it is essential to closely examine its assets and how they have been managed over the last decade.

Ibaera Capital brings financial stability and technical expertise

Similarly, to grasp what could be the start of a potential turnaround, there needs to be a comparative assessment based on new initiatives aimed at monetising those assets.

In particular, the focus should be on assessing the potential value-creating strategy that has been recently framed via an important relationship forged with Ibaera Capital.

This collaboration provides the financial backing and technical expertise to convert resource ounces into dollars and importantly grow the existing resource.

Understanding the past to appreciate the future

There is no doubting Azumah’s journey has been rocky, but it has managed to build a resource of more than 2 million ounces in one of Africa's most prolific gold-bearing regions.

It could be argued that execution has let it down in the past because there have been stages where its share price better represented the value of its assets.

They were times when investors could see a path to production and profitability.

A significant share price spike occurred in 2015 after Azumah completed a feasibility plan pointing to annual production of 90,000 ounces of gold over a seven-year mine life.

However, this didn’t come to fruition, and the doubling in its share price unwound as the feasibility study failed to materialise.

As we outline later, this and more is very much back on the table, and as a major stepping stone to production, any hint of positive news could be a substantial share price catalyst.

Shareholders want a focused approach

The other factor that could be weighing on the company’s share price is the fact that it has too many potential producing assets.

Azumah’s position could be termed as an embarrassment of riches as one can see in this video - Fly Through Movie.

This can make it difficult for investors to imagine a potential scenario where a company transforms from a highly prospective exploration play to one that creates shareholder value through transitioning to production.

As Proactive Investors will highlight, Azumah has had defined resources of more than 1 million ounces since 2010.

While it has continued to build that resource without moving to production, there now appears to be an acknowledgement that the time is ripe to create shareholder value.

Azumah ready to unlock the vault

The initiatives taken in fiscal 2018 suggest that there has been no time in Azumah’s history where it has been so focused on monetising its assets.

It is this factor, and in particular, the measures it has put in place to execute on this strategy, that suggest a turnaround is imminent.

That is where the enterprise value/resource ounce metric comes into play.

When there is a turnaround with a stock that is fundamentally undervalued there is a good chance a rerating could be substantial.

Crunching the numbers

Azumah is trading on an enterprise value/resource ounce of $8 per ounce compared with the peer explorers and developers average of $44 per ounce.

If it were to fall in line with its peers, Azumah’s market capitalisation would be about $90 million, implying a share price of 13 cents.

This compares with Monday’s closing price of 2.4 cents.

Is there any other way but up

While this doesn’t suggest that Azumah will rerate to the tune of 400% overnight, it could mean that its share price may regain sustained positive momentum.

Having hit 2.2 cents in early April, the company certainly appears oversold, and just looking at historical trading patterns, it is only slightly higher than its all-time low of 2 cents.

Exploration is still important

While Azumah has a large resource it is still relying on further exploration success and an increase in resources to drive a share price rerating.

There are examples of how this has been a determining feature of the company in the past.

For example, one of its biggest surges was in March 2010 when Azumah’s resource increased 45% to 1.1 million ounces, triggering a three-fold share price increase.

The company’s shares doubled from about 20 cents to 40 cents, and within six months had doubled again to 80 cents.

Share price rallies weren’t gold fever driven

It is worth noting that this rally wasn’t even in the gold rush days and the gold price was around US$1,100 per ounce.

The S&P/ASX 200 gold index (XGD) was hovering in the vicinity of 5,700 points, well shy of the high of 8,500 points it hit 12 months later.

This ponders the question as to why the company is trading at 2.4 cents today even though it has nearly doubled its resource since 2010 to 2.1 million ounces.

What is different today

The answer is easy - the company has not previously been in a financial position such as it is now.

Shareholders’ vision of what could be was rightly blurred by the issue of funding a transition from exploration to production

In what could be termed a transformative earn-in agreement with private equity group Ibaera Capital, exploration and studies are now funded to the tune of US$17 million.

Following this expenditure, Ibaera will be entitled to a stake of 47.5%.

Participation by Ibaera extends beyond financial support, as the group has a team of exploration and project development specialists who have a track record of unlocking value.

What does Ibaera bring

Ibaera Capital is a private equity funded, entrepreneurial mineral investment and development company backed by international investment funds.

The group invests in, acquires and develops emerging copper, nickel, zinc and gold projects from exploration and early development.

This serves to significantly revalue them through appropriate funding, astute management and patient development.

Founded in 2012 by executives from the development teams at Fortescue Metals Group and WMC Resources, Ibaera Capital is able to provide in-field expertise.

This enables the group to manage projects from exploration through to construction.

The group sets itself apart from the mainstream investment market by retaining significant technical expertise and exploration knowledge.

Ibaera has 12 geologists and engineers who are collectively and individually recognised for their contribution to the discovery and development of world-class mining ventures.

So, Ibaera has plenty of skin in the game, expertise on the ground and a substantial asset base to work with.

The building blocks

As mentioned, one of the challenges Azumah has faced in terms of investor engagement is providing a true appreciation of its asset base.

If Azumah had a single 2.1-million ounce deposit, it would be much easier to join the dots between the present and what could be a very promising future.

However, what the company has working in its favour is that a number of its large deposits are in close proximity to each other, providing the opportunity to have a centralised processing plant.

Azumah’s war chest

Azumah has three main deposits, in Kunche and Bepkong adjacent to the border with Burkina Faso, and Julie which is about 80 kilometres to the east.

The resource of 2.1 million ounces of gold grading 1.5 g/t gold includes 1.4 million measured and indicated ounces grading 1.7 g/t with these evenly distributed between Kunche-Bepkong and Wa East, the Julie deposit.

Most discoveries have been blind

Resources have been progressively grown through exploration of the company’s 2400 square kilometre licence holdings.

This territory features large tracts of prospective Birimian terrain, the rocks that host the majority of West Africa’s gold mines.

Much of this is covered in soil, alluvium or laterite so most discoveries have been ‘blind’, highlighting the potential for more consistent and value-adding resource definition.

Management anticipates resources will grow substantially as it continues to test its large pipeline of target areas and specific prospects.

Feasibility study completed in 2015

Azumah completed a feasibility study in 2015 for a mining operation based on an initial seven-year life and producing about 90,000 ounces of gold per year.

Feedstock would be sourced from open pit mining with ore treated through a nominal 1.2 million tonnes per year carbon-in-leach (CIL) processing plant.

The plant would be adjacent to the Kunche deposit, enabling it to treat Julie primary and transitional ore prior to road haul to the processing plant.

An ore reserve of 624,000 ounces has been defined with the designed optimised pits also containing inferred resources of 28,000 ounces.

Transitioning to production

Azumah’s exploration strategy has been driven by its need to boost resources to increase its reserve base from 624,000 ounces to about 1 million ounces.

This would serve to underpin a development decision and improve funding capability, in particular through an effective reduction in the development capital per reserve ounce.

This is where the company’s collaborative approach with Ibaera should come to the fore.

Not only will the group provide Azumah with a better chance of growing reserves, but its access to capital markets should also be an advantage in terms of ongoing funding.

The company is focused on developing a large gold resource and reserve in Ghana, West Africa.

Azumah has established a resource of more than 2 million ounces across a number of deposits which make up the Wa project.

Injection of capital to assist in transition

Azumah is at the stage where it is looking to transition from explorer to producer.

Assisting it in achieving this goal is a collaborative agreement with Ibaera Capital, which was forged last year.

This provided the company with valuable capital of about $17 million which will assist in exploration and studies, potentially providing a pathway to production.

Resource expansion central to production

Azumah completed a feasibility study in 2015 based on the production of 90,000 ounces per year over a seven-year mine life.

The company is looking to build its reserves with a view to improving project economics.

Azumah referred to the proposed capital raising as ‘material’, suggesting that it may be considering more extensive exploration or an accelerated transition to production.

Clarity could provide share price momentum

Details of the capital raising and the intended use of funds should come to hand by the middle of next week, potentially providing an insight into the Azumah’s strategy.

As such, it could be a share price catalyst for a company that is looking oversold, trading well shy of its peers on an enterprise value to resource ounce basis.

]]>Fri, 20 Apr 2018 10:42:00 +1000http://www.proactiveinvestors.com.au/companies/news/195419/azumah-resources-flags-capital-raising-as-it-looks-to-grow-reserves-at-gold-project-in-ghana-195419.htmlhttp://www.proactiveinvestors.com.au/companies/news/193506/azumah-resources-reaffirms-gold-drilling-success-at-butele-north-target-in-ghana-193506.html
Azumah Resources Ltd (ASX:AZM) has revealed a cross-section of its first-pass drilling result of 16 metres at 1.07 g/t gold from surface (including 6 metres at 1.86 g/t gold) at the Butele North target.

Butele Prospect: Cross section of drill hole BURC019

The Butele North target is within Azumah’s Wa Gold Project in Ghana which has a JORC-compliant resource of 2.1 million ounces of gold grading 1.5 g/t gold.

READ: Azumah Resources hits gold at new Butele North target in Ghana

Earlier this week, Azumah drilled out gold in its first pass, 19-hole, 1,729-metre reverse circulation (RC) drill program at the Butele North target.

The program was designed as a broad, initial test of the main 1.6x0.4 kilometre Butele North auger anomaly.

Infill auger sampling and additional RC drilling is planned to investigate the continuity of mineralised shear zones at Butele North.

Multi-target, high-intensity exploration campaign

Private equity group Ibaera Capital is earning up to 47.5% in the Wa Gold Project in two stages over two years by spending up to US$13.5 million ($17 million).

In 2018, $6 million has been committed to a multi-target, high-intensity exploration campaign including 47,000 metres of drilling.

Large pipeline of target areas and specific prospects

Azumah is exploring 2,400 square kilometres of licence holdings, which encompass large tracts of prospective Birimian terrain, the rocks that host the majority of West Africa’s gold mines.

Much of this is covered in soil, alluvium or laterite so most discoveries have been ‘blind’.

Azumah is expected to substantially grow its resource as it continues to test the large pipeline of target areas and specific prospects.

READ: Azumah Resources extends gold zones at Wa project in Ghana
]]>Wed, 21 Mar 2018 12:26:00 +1100http://www.proactiveinvestors.com.au/companies/news/193506/azumah-resources-reaffirms-gold-drilling-success-at-butele-north-target-in-ghana-193506.htmlhttp://www.proactiveinvestors.com.au/companies/news/193333/azumah-resources-hits-gold-at-new-butele-north-target-in-ghana-193333.html
Azumah Resources Ltd (ASX:AZM) has drilled out gold in its first pass drill program at the Butele North target within the Wa Gold Project in Ghana.

Results from the reverse circulation (RC) 19-hole, 1,729-metre program included 6 metres at 1.9 g/t gold from 9 metres depth.

The program was designed as a broad, initial test of the main 1.6x0.4 kilometre Butele North auger anomaly.

Confirmation of mineralisation in yet another new area of Wa Gold Project

Stone continued: “With many more targets to be tested, we are optimistic that the current multi-target auger, aircore and RC drilling campaigns being designed and managed by joint venture partner Ibaera will continue to drive the project closer to our immediate objective of a 1 million ounce Ore Reserve.”

Private equity group, Ibaera Capital, are earning up to 47.5% in the Wa Gold Project in two stages over two years by spending up to US$13.5 million (A$17 million).

In 2018, $6 million has been committed to a multi-target, high-intensity exploration campaign including a combined 47,000 metres of drilling.

Stephen Stone, managing director, said: “The extended robust anomalies at Josephine South and Manwe bode well for the pursuit of additional mineral resources at these targets.

“With follow-up work being planned, aircore and reverse circulation programs completed at Butele and a commitment made to a 5,000-hole, 30,000 metres auger program covering the Wa Lawra and Wa East areas, investors can look forward to a high-level of news flow.”

WATCH NOW: Azumah Resources Gold Bounty in Ghana

The most recent 211-hole, 3,759-metre aircore campaign is part of an overall strategy to rapidly increase mineral resources and ore reserves at Wa.

There were 84 holes for 1,170 metres at Josephine South and as well as defining a new zone, drilling also extended 500 metres to the southwest a zone of granite-hosted mineralisation.

Six zones identified at Manwe

At Manwe, 127 holes were completed for 2,589 metres to test for mineralisation between the Manwe Main and Manwe North zones.

Six prospective zones of shear-associated gold anomalism with a cumulative strike of at least 5 kilometres have been identified at Manwe.

Resource expectations increase

This considerably increases resource expectations with the controlling shear zones not closed-off to the southeast.

Furthermore, the prospective shear zone hosting the Manwe Main mineralisation has been demonstrated to extend a further circa 600 metres northwest and remains open in that direction.

Reverse circulation drilling proposed

The new zones, together with extensions of previously defined lodes, will be the focus of future reverse circulation drilling.

This will be aimed at establishing an initial JORC resource for the Manwe prospect.

Azumah has committed to a 5,000 hole, 30,000-metre auger drilling campaign that will test for evidence of mineralisation at numerous blind targets across the 2,400km square kilometre project.

]]>Tue, 06 Mar 2018 13:07:00 +1100http://www.proactiveinvestors.com.au/companies/news/192639/azumah-resources-extends-gold-zones-at-wa-project-in-ghana-192639.htmlhttp://www.proactiveinvestors.com.au/companies/news/192388/azumah-resources-begins-drilling-to-expand-gold-reserves-in-ghana-192388.html
Azumah Resources Ltd (ASX:AZM) has commenced a 4,500-metre drilling program designed to extend the ore reserves at the flagship Kunche and Bepkong deposits at its Wa Gold Project in Ghana.
READ: Azumah Resources aims to grow gold resource with drilling program

Stephen Stone, managing director, said: “A 25-hole, 4,500-metre RC drilling campaign is in full swing at the Wa Gold Project’s Kunche and Bepkong deposits where the technical team of funding partner Ibaera Capital is aiming to extend and deepen existing pit designs and capture satellite mineralisation to boost ore reserves.

“We last drilled the Kunche-Bepkong area several years ago so we are really looking forward to seeing what this drilling will deliver and its implications for the broader project”

Aiming to expand existing pits and increase ore reserves

The current Kunche and Bepkong pits already hosts ore reserves of 309,000 ounces of gold and 113,000 ounces of gold respectively.

A number of new opportunities have been identified to reconsider existing pit designs in order to capture more mineralisation and boost ore reserves.

WATCH: Azumah Resources Gold Bounty in Ghana

Drilling at Kunche is designed to test for mineralisation that might enable the existing pit to be extended north, to deepen the mid-pit ‘saddle’ area and to possibly capture eastern lode mineralisation into the pit.

Bepkong drilling is designed to enable the pit to be extended north and to either capture Bepkong North mineralisation or enable a separate pit to be designed

The drilling is scheduled to take five weeks with results likely to be available in early to mid-April 2018.

]]>Thu, 01 Mar 2018 11:24:00 +1100http://www.proactiveinvestors.com.au/companies/news/192388/azumah-resources-begins-drilling-to-expand-gold-reserves-in-ghana-192388.htmlhttp://www.proactiveinvestors.com.au/companies/news/190418/azumah-resources-aims-to-grow-gold-resource-with-drilling-program-190418.html
Azumah Resources Limited’s (ASX:AZM) 940-hole drilling program at its Wa Gold Project in Ghana has prompted the company to undertake further exploration.

The delineation of geochemical anomalies of 2 kilometres and 1.6 kilometres at its Duri and Butele prospects provide a platform to launch a more targeted exploration program.

The status of the Bepkong North-West target has also been elevated following a review and reinterpretation of historical aircore data.

Potential to increase mineral resource

Duri, Butele and Bepkong are considered by the company as compelling walk-up opportunities to increase the current Mineral Resources of 2.1 million ounces.

On 1 September 2017 Azumah executed an earn-in and shareholders agreement with the Perth-based private equity group.

This entitles Ibaera to earn up to a 47.5% direct interest in the project for expenditure of circa $17 million in two stages over two years.

READ: Azumah Resources receives approval for $17M Ghana gold farm-in

The agreement sets out the basis for the parties to deliver a study supporting a decision to proceed to production within two years.

Peter Hairsine, project manager and Ibaera executive, said: “With Ibaera having commenced the sole funding of the Wa Gold Project for the next two years, Azumah’s investors can look forward to a strong results driven news flow in 2018.

“There is an enormous opportunity to add considerable value to what is already a very solidly positioned project.”

Ibaera’s team designs 2018 campaign

Ibaera’s team of geologists and engineers have designed the 2018 exploration campaign with the aim of increasing Wa’s existing resources and reserves base.

The first phase drilling program aims to increase resources in proximity to the Kunche, Bepkong and Julie deposits.

It also aims to provide sufficient definition to deliver a maiden resource for deposits occurring along the emerging Josephine-Manwe trend.

Azumah is focused on exploring and developing its regional scale Wa Gold Project, which currently hosts 2.1 million ounces of gold grading 1.5 g/t.

Three main deposits have been discovered and extensively drilled at Kunche, Bepkong and Julie, as well as several satellite deposits.

Stephen Stone, managing director, commented

“The rapid approval by the new Ghana Government of the transformational Azumah-Ibaera funding agreement is entirely consistent with its push to re-establish Ghana as West Africa’s preferred destination for exploration and mining.

“Ibaera’s highly experienced and accomplished technical team is now onboard and finalising programmes and budgets including for drilling aimed at boosting Mineral Resources and Ore Reserves and ultimately the delivery of a revised blueprint for funding and development of the Wa Gold Project.”

Ibaera bolsters Azumah management

Ibaera, headed by former Manager of Business Development at Fortescue Metals Group (ASX:FMG), James Wallbank, has now made all of its key appointments.

Appointments include:

- Peter Hairsine: former Project Study Manager and Manager of Business Development at FMG;
- Dr Jon Hronsky: former Manager of Strategy and Generative Services for BHP Billiton Mineral Exploration, Global Geoscience Leader for WMC Resources Ltd and Chairman of the Board of the Centre for Exploration Targeting;
- Paul L’Herpiniere: former Exploration Manager at FMG; and
- Chris Alexander: Ibaera chief financial officer (CFO).

Next steps

The expanded team has already commenced a comprehensive review of the current feasibility study for the project, a review of existing targets and is also generating new targets.

]]>Fri, 27 Oct 2017 17:08:00 +1100http://www.proactiveinvestors.com.au/companies/news/186321/azumah-resources-receives-approval-for-17m-ghana-gold-farm-in-186321.htmlhttp://www.proactiveinvestors.com.au/companies/news/184261/azumah-resources-lays-plans-to-advance-wa-gold-project-in-ghana-184261.html
Azumah Resources Ltd (ASX:AZM) is now firmly positioned to move into its next phase of growth focused on rapidly advancing its Wa Gold Project in Ghana.

The project hosts 2.1 million gold ounces at 1.5g/t gold, which includes 1.4 million gold ounces in the Measured and Indicated categories at 1.7g/t gold.

Azumah has now wrapped up a very busy period, which included the successful execution of the $17 million earn-in with private equity group Ibaera Capital GP Limited.

Programs and budgets are already being planned which will see a recommencement of drilling in coming weeks.

Drilling will aim to continue Azumah’s track record of resource and reserve expansion.

Stephen Stone, managing director for Azumah, commented:

"The addition of the Ibaera team, substantially increased funding availability, a new Ghanaian government firmly intent on expanding its gold industry plus the excellent platform already established for the Wa Gold Project, all combine to place Azumah in its strongest position yet.

"The excellent support of the fully underwritten Rights Issue by both existing shareholders and many new investors is a strong endorsement of the Company’s recent initiatives.

"Azumah is also pleased to note that the remaining shareholding of Macquarie Group Limited was yesterday acquired predominantly by existing shareholders of Azumah and follows a reduction in its holding over the past several months."

The issue was priced at $0.02, with investors already sitting on a 15% paper gain based on the last traded price of $0.023.

The shortfall will be placed with underwriter Paterson’s Securities, and in total the issue will raise $2.33 million before costs.

The funds raised will strengthen the company’s ability to deliver on a variety of initiatives in the coming months at its Wa Gold Project in Ghana, West Africa.

The project hosts 2.1 million gold ounces at 1.5g/t gold. This includes 1.4 million gold ounces in the Measured and Indicated categories at 1.7g/t gold.

Stephen Stone, managing director, commented:

"The solid support of the rights issue by existing shareholders represents a strong endorsement of the company’s repositioning for its next growth phase following the completion last week of its Earn-In and Shareholders Agreement with private equity group, Ibaera Capital.

"We welcome to the register our new shareholders and look forward to them also participating in a swift unlocking and adding of value to the Wa Gold Project by the newly formed partnership."

Ibaera can earn up to a 47.5% interest for an expenditure of US$13.5 million in the company’s Wa Gold Project in Ghana, West Africa.

WATCH LATEST VIDEO - Details on A$17 million earn-in deal.

Azumah’s rights issue closes at 5pm today, and is priced at $0.02 on the basis of 1 new share for every 5 shares.

Azumah shares last traded at $0.025.

Stephen Stone, managing director for Azumah, commented:

"The goodwill and pragmatism demonstrated by Azumah and Ibaera to complete the earn-in and shareholders agreement in a very compressed time-frame is indicative of their collaborative approach towards fast-tracking exploration and ultimately the development of the Wa Gold Project.

"Azumah has grown the project to its present 2.1 million ounce status and now looks forward to combining with Ibaera’s team of exploration and project development professionals to unlock its full value."

Azumah has now lodged its prospectus with ASIC, with the ex-date of 15th August 2017.

The prospectus will then be sent to shareholders on the 18th August 2017.

The funds raised through the rights issue will strengthen the company’s ability to deliver on a variety of initiatives in the coming months at its Wa Gold Project in Ghana, West Africa.

WATCH LATEST VIDEO - Details on A$17 million earn-in deal

The deal with Perth-managed Ibaera Capital GP Limited will see a two-stage cash injection over two years of up to US$13.5 million (~A$17 million) for up to a 47.5% interest in Azumah’s wholly owned Ghana operating company, Azumah Resources Ghana Limited.

This structure will limit the dilution that shareholders would normally encounter for a market-based raising at the corporate level.

The objective of the deal is to boost gold resources and reserves above the present 2.1 million ounces and 624,000 ounces respectively.

The funds raised through the rights issue will strengthen the company’s ability to deliver on a variety of initiatives in the coming months at its Wa Gold Project in Ghana, West Africa.

The positive momentum continues for Azumah who earlier this week outlined a transformational $17 million earn-in detail with new partner Ibaera Capital.

Stephen Stone, managing director, commented: “The rights issue enables shareholders to add to their existing share holdings at a generously discounted and broker fee exempt price at a pivotal point for the company as it sets out to boost resources and reserves.

“With the additional support to come from the earn-in deal struck this week with Ibaera, we will be able to accelerate the overall development of the project.”

Rights issue details

Azumah eligible shareholders will be able to acquire one new share for every five shares held at 5.00PM (Perth time) on 16 August 2017, also known as the record date.

The issue price is $0.02, which represents a ~20% discount to the 30-day volume-weighted average price (VWAP) on ASX of ~$0.025 and a 28.5% discount to the last sale price of $0.028.

The funds from the rights issue will be applied to in-country operating commitments, $250,000 to complete the acquisition of the Julie West Licence and the high-grade Mineral Resources it hosts, working capital and to maintain balance sheet strength.

The prospectus is planned to be lodged with ASIC on 10 August and the rights issue is expected to close 1 September.

Further details of the offer will be outlined in the prospectus.

$17 million earn-in deal

The deal with Perth-managed Ibaera Capital GP Limited will see a two-stage cash injection over two years of up to US$13.5 million (~A$17 million) for up to a 47.5% interest in Azumah’s wholly owned Ghana operating company, Azumah Resources Ghana Limited.

This structure will limit the dilution that shareholders would normally encounter for a market based raising at the corporate level.

The objective of the deal is to boost gold resources and reserves above the present 2.1 million ounces and 624,000 ounces respectively.

Furthermore it aims to deliver within a two-year time frame, or less, a revised feasibility study to support the funding and development of the presently proposed 90,000 ounce per year gold operation.

Execution of the full earn-in, investment and joint venture agreement (EIJVA) is expected by 31
August 2017.

]]>Fri, 04 Aug 2017 11:33:00 +1000http://www.proactiveinvestors.com.au/companies/news/181956/azumah-resources-outlines-fully-underwritten-rights-issue-181956.htmlhttp://www.proactiveinvestors.com.au/companies/stocktube/7871/azumah-resources-stephen-stone-reveals-details-on-a-a17-million-earn-in-deal-7871.html
Thu, 03 Aug 2017 08:30:00 +1000http://www.proactiveinvestors.com.au/companies/stocktube/7871/azumah-resources-stephen-stone-reveals-details-on-a-a17-million-earn-in-deal-7871.htmlhttp://www.proactiveinvestors.com.au/companies/news/181813/azumah-resources-does-a17-million-earn-in-deal-181813.html
Azumah Resources (ASX:AZM) has entered into a binding term sheet detailing an earn-in of up to 47.5% of its Wa Gold Project in Ghana for an expenditure of US$13.5 million ~(A$17 million).

The two-stage earn-in is over two years and is with Perth managed private equity group, Ibaera Capital GP Limited.

The deal’s objective is to boost resources and reserves and deliver a fundable development project.

Under the deal, Ibaera also has the option to invest up to A$2 million in Azumah shares at a premium of 10% above the 10-day volume-weighted average price by 31 August 2017.

Execution of the full earn-in, investment and joint venture agreement (EIJVA) is expected by 31
August 2017.

Stephen Stone, managing director, commented

“This transaction represents a game changer for the company and another important step in unlocking fundamental value and achieving a market rerating.

“It’s been a tough environment in which to build new projects and having carefully considered several options, we are very pleased to be partnering with Ibaera.

“We are looking forward to working with its team of focused and highly regarded mining industry professionals who have a proven capability in discovery and for driving major projects to production whilst employed at WorleyParsons Ltd (ASX:WOR), Fortescue Metals Group Ltd (ASX:FMG) and BHP Billiton Limited (ASX:BHP).

“Shareholders can expect an increased news flow reflecting a range of value adding investment catalysts as the Ibaera funding injection drives an acceleration of activities.”

Building towards a 90,000 ounce per year gold operation

The objective of the deal is to boost gold resources and reserves above the present 2.1 million ounces and 624,000 ounces respectively.

Furthermore it aims to deliver within a two-year time frame, or less, a revised feasibility study to support the funding and development of the presently proposed 90,000 ounce per year gold operation.

Transaction details

The key provisions of the upcoming EIJVA to be executed by 31 August 2017 include:

- Ibaera may spend an initial US$11.25 million (~A$14.3 million) within two years, in accordance with quarterly cash calls, to earn an initial 42.5% interest;
- If additional funds are required to achieve the key objectives of the joint venture, and Azumah elects not to pro-rata co-fund, Ibaera may sole fund the next US$2.25 million (~A$2.8 million) and earn an additional 5% interest - total of US$13.50 million (~A$17 million) and 47.5%;
- If Ibaera does not fulfil its initial funding obligations of US$11.25 million, subject to provisions to rectify this, it will withdraw from and not hold any equity in Azumah’s African subsidiary;
- The parties will then work together to co-fund all future expenditures and/or secure project development funding with each party having the right to match third party funding terms; and
- Ibaera will have the right, but not the obligation, to subscribe prior to 31 August 2017 (or the date of execution of the EIJVA if earlier) for A$2 million and an absolute maximum of 65 million new ordinary shares in Azumah at a 10% premium to the 10-day VWAP on the date it subscribes for the shares.

Wa Gold Project

Azumah is exploring and developing its regional scale Wa Gold Project in the West African country of Ghana.

Three main deposits have been discovered and extensively drilled at Kunche, Bepkong and Julie.

To date, the company has defined a JORC 2012 Mineral Resource of 2.06 million ounces of gold grading 1.5 g/t gold across 7 deposits.

The Kunche, Bepkong and Julie deposits have an Ore Reserve of 624,000 ounces gold.

Azumah completed a feasibility study for an open pit mining operation based on an initial seven-year life producing ~90,000 ounces gold per year.

The company has had two, 15-year mining leases granted over its key deposits.

Of the 140 targets, 18 are considered very-high priority and 32 are considered high priority.

The findings are a result of an updated targeting study by geological consultants CSA Global Pty Ltd.

The study will underpin Azumah’s post-seasonal rains exploration push to increase total gold JORC resources to over 3.0 million ounces and Ore Reserves to over 1 million ounces.

Stephen Stone, managing director, commented: “Whilst we have sufficient Ore Reserves to firmly underpin a seven-year, 100,000 ounces per year gold mining operation with robust operating margins, we recognise the need to increase Ore Reserves to reduce the establishment capital cost assigned to each reserve ounce and to enhance overall project metrics.”

Background

Azumah is exploring and developing its regional scale Wa Gold Project in the West African country of Ghana.

Three main deposits have been discovered and extensively drilled at Kunche, Bepkong and Julie.

To date, the company has defined a JORC 2012 Mineral Resource of 2.06 million ounces of gold grading 1.5 g/t gold across 7 deposits.

The Kunche, Bepkong and Julie deposits have an Ore Reserve of 624,000 ounces gold.

Azumah completed a feasibility study for an open pit mining operation based on an initial seven-year life producing ~90,000 ounces gold per year.

The company has had two, 15-year mining leases granted over its key deposits.

Proven exploration methods

Azumah has a good track record of discovery plus its regional-scale footprint of prospective Birimian geological terrain supports its strategy to grow resources and reserves.

The company will systematically test its new and extensive array of priority targets, initially using low-cost auger or aircore drilling.

Follow-up reverse circulation drilling will take place as warranted.

]]>Mon, 24 Jul 2017 12:05:00 +1000http://www.proactiveinvestors.com.au/companies/news/181309/azumah-resources-lays-out-plan-to-grow-west-african-gold-inventory-181309.htmlhttp://www.proactiveinvestors.com.au/companies/news/178221/azumah-resources-samples-more-high-grade-gold-in-west-africa-178221.html
Azumah Resources (ASX:AZM) has sampled grades of up to 60.0 g/t gold in another batch of rock chip samples from its regional-scale Wa Gold Project located in Ghana.

Additional reconnaissance stage mapping and rock chip sampling has identified several new areas of interest within its Julie West licence.

Drilling campaigns are being designed to test and extend the recently discovered mineralisation at a growing pipeline of targets.

Stephen Stone, managing director, commented: “Julie West now stands as an excellent project in its own right and continues to excite our geological team, who keep finding new zones of mineralisation”.

“There is considerably more work to be undertaken at Wa East and we have the right team with a strong track record of discovery to deliver additional ounces.”

Generative auger and rock chip sampling, trenching and mapping campaigns continue across Azumah’s extensive West African tenure.
Furthermore, a formal update of the 2013 Targeting Study has been commissioned and will be available in coming weeks.

A component of the new study will be to interrogate the vast quantity of multi-element data that Azumah routinely collects from its geochemical, aircore and reverse circulation drilling activities.

Background

Azumah is exploring and developing its regional scale Wa Gold Project in the West African country of Ghana.

Three main deposits have been discovered and extensively drilled at Kunche, Bepkong and Julie.

To date the company has defined a JORC 2012 Mineral Resource of 2.06 million ounces of gold grading 1.5 g/t gold across 7 deposits.

The Kunche, Bepkong and Julie deposits have an Ore Reserve of 624,000 ounces gold.

Azumah completed a feasibility study for an open pit mining operation based on an initial seven-year life producing ~90,000 ounces gold per year.

The company has had two, 15-year mining leases granted over its key deposits.

Analysis

These latest results confirm mineralisation is very widespread across the 142 square kilometre Julie West licence.

Drilling programs which are being planned will further confirm the extent of this sampled gold mineralisation and has the potential to be a value catalyst for the company.

The company remains leveraged to short term news flow with exploration field work continuing across the project.

Azumah is at a pivotal point in its growth cycle and the substantial 2.1 million ounce gold resource provides the company with development optionality.

At its current share price, the company has a market cap of A$15.7 million, which is a compelling valuation given the company’s gold resource inventory.

Azumah has previously outlined that it is talking at the corporate and direct project level with a number of international groups with the aim being to advance the project through to development.

]]>Wed, 24 May 2017 10:00:00 +1000http://www.proactiveinvestors.com.au/companies/news/178221/azumah-resources-samples-more-high-grade-gold-in-west-africa-178221.htmlhttp://www.proactiveinvestors.com.au/companies/news/174069/azumah-resources-samples-high-grade-gold-in-west-africa-174069.html
Azumah Resources (ASX:AZM) has sampled grades of up to 17.4 g/t gold in recent rock chip sampling at its regional-scale Wa Gold Project located in Ghana.

44 rock chip samples were collected from four prospects on the 146 square kilometre Julie licence, which included the Georgie target and three new targets.

First pass drilling at the Georgie target in late 2016 produced 3 metres at 9.78 g/t gold from 12 metres and 2 metres at 4.35 g/t gold from 7 metres.

Geochemical sampling and mapping underway to screen and delineate the sampled targets and additional targets for drill testing.

Stephen Stone, managing director, commented: “The 5,885 metre multi-target drilling program completed in late 2016 delivered four new discoveries of primary mineralisation for the Wa East region, including at the Georgie prospect on the Julie West licence.

“We look forward to the eventual drilling of these latest targets and to hopefully replicating these successes.”

Rock chip assays

Forty-four rock chip samples were collected from generally limited areas of outcrop in or around the areas of gold-in-soil anomalism or from shallow artisanal workings.

Azumah is exploring and developing its regional scale Wa Gold Project in the West African country of Ghana.

Three main deposits have been discovered and extensively drilled at Kunche, Bepkong and Julie.

To date the company has defined a JORC 2012 Mineral Resource of 2.06 million ounces of gold grading 1.5 g/t gold across 7 deposits.

The Kunche, Bepkong and Julie deposits have an Ore Reserve of 624,000 ounces gold.

Azumah completed a feasibility study for an open pit mining operation based on an initial seven-year life producing ~90,000 ounces gold per year.

The company has had two, 15-year mining leases granted over its key deposits.

Analysis

The recently acquired Julie West licence continues to deliver new targets highlighting its prospectivity and capacity to deliver more mineralisation into Azumah’s growing 2.1 million ounce gold platform.

The follow up mapping, trenching and auger work will help Azumah understand the value of these prospects and advance them towards becoming a potential gold resource.

During the current March quarter, Azumah plans to:

Exploration.

- Review drilling results from all targets and plan follow-up programmes as warranted;
- Progress exploration at several other prospects within the Company’s target pipeline; and
- Continue evaluating the newly acquired Julie West licence.

Wa Gold Project Development.

- Progress discussions with parties interested in project financing and development co-participation;
- Advance discussions with the Ghana Government on securing material fiscal concessions (a new government was elected on 7 December, 2016 with the New Patriotic Party lead by Nana Akufo-Addo replacing the National Democratic Congress); and
- Progress applications for environmental licences for the proposed Kunche-Bepkong and Julie Project sites.

]]>Thu, 02 Mar 2017 10:00:00 +1100http://www.proactiveinvestors.com.au/companies/news/174069/azumah-resources-samples-high-grade-gold-in-west-africa-174069.htmlhttp://www.proactiveinvestors.com.au/companies/news/170294/azumah-resources-makes-fourth-discovery-at-west-african-gold-project-170294.html
Azumah Resources (ASX:AZM) has received final results from its recently completed drill program confirming a fourth discovery of primary gold mineralisation at the Wa gold project located in Ghana.

The 93 hole, 5,885 metre combined reverse circulation and aircore program returned 3 metres at 9.78 g/t gold from 12 metres depth at the Georgie anomaly.

A follow-up reverse circulation drilling program is planned at Georgie to test for strike and depth continuity.

The Wa gold project is comprised of a number of separate licences and the Georgie discovery is located within the Julie West licence, which was only recently acquired.

Stephen Stone, managing director, commented:

"These final results confirm the just completed 5,885 metre multi-target drilling program to have been an outstanding success, delivering four new discoveries of primary mineralisation at previously undrilled anomalies and all proximal to the main ore deposits and proposed mining infrastructure."

Background

Azumah is exploring and developing its regional scale Wa Gold Project in the West African country of Ghana.

Three main deposits have been discovered and extensively drilled at Kunche, Bepkong and Julie.

To date the company has defined a JORC 2012 Mineral Resource of 2.06 million ounces of gold grading 1.5 g/t gold across 7 deposits.

The Kunche, Bepkong and Julie deposits have an Ore Reserve of 624,000 ounces gold.

Azumah completed a feasibility study for an open pit mining operation based on an initial seven-year life producing ~90,000 ounces gold per year.

The company has had two, 15-year mining leases granted over its key deposits.

Drill result details

Highlights from the final drill results from the recently completed program include:

The ASX has granted a trading halt, which will remain in place until the opening of trade on Monday 20th June 2016, or earlier if an announcement is made to the market.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>Thu, 16 Jun 2016 10:00:00 +1000http://www.proactiveinvestors.com.au/companies/news/149950/azumah-resources-ltd-raising-cash-for-african-exploration-69239.htmlhttp://www.proactiveinvestors.com.au/companies/news/149949/azumah-resources-ltd-looks-to-expand-2m-ounce-gold-bounty-in-ghana-68937.html
Azumah Resources Ltd (ASX:AZM) has completed an auger drilling program at the Manwe prospect that has extended to 3 kilometres zones the anomalous zone at the prospect, part of the Wa Gold Project in Ghana.

Azumah is looking to add to the gold resource of 2 million ounces and 624,000 ounces of reserves at Wa.

Azumah previously received excellent results from Phase 1 drilling at Manwe, including 12 metres at 5.28 g/t gold from 49 metres and 32 metres at 2.18 g/t gold from surface.

The company is currently conducting another 21 square kilometres auger drilling programme aimed at defining the extremities to the northwest - southeast trending anomalism.

Earlier this month Azumah Resources reported several initiatives designed to achieve major capital cost reductions at the project.

These resulted from a review of the March 2015 feasibility study and included US$54 million from establishment costs and US$28 million from its mining fleet, which will now be provided by a contractor.

The cost savings will reduce the capital funding requirement for the development of the WA Project. Taken with strengthening gold prices, and the resulting improved investor sentiment, this enhances the chances of securing development finance.

Shares in Azumah Resources are up nearly three-fold from their low in January 2015.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

]]>Tue, 31 May 2016 12:30:00 +1000http://www.proactiveinvestors.com.au/companies/news/149949/azumah-resources-ltd-looks-to-expand-2m-ounce-gold-bounty-in-ghana-68937.htmlhttp://www.proactiveinvestors.com.au/companies/news/149948/azumah-resources-on-a-funding-drive-65494.html
Azumah Resources (ASX:AZM) is heading to market with a capital raising, and the ASX has granted the company a trading halt to prepare.

Azumah is focussed on the Wa Gold Project in Ghana, which currently hosts 2 million gold ounces, with over half in the higher confidence Measured & Indicated categories.

The halt will remain in place until the opening of trade on Wednesday 11th November 2015, or earlier if an announcement is made to the market.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Funds will be provided via the issue of 30 million Azumah shares at $0.04 and together with Caitlyn’s existing shareholding of 20 million shares, will elevate it to become Azumah’s largest shareholder at 13%.

Azumah’s working capital will increase to over $4 million with the new funds being applied to complete a Feasibility Study scheduled for Q4 2014, and to drill several high-priority exploration targets.

The increased commitment by Caitlyn provides a strong endorsement for the Wa Gold Project and complements Azumah's other key investors and project participants, Ausdrill (ASX:ASL) and Macquarie Bank.

Caitlyn is controlled by Indian industrialist Mr Agnivesh Agarwal who is Chairman of United Arab Emirates-based gold refiner Fujairah Gold, a 100%-owned subsidiary of listed British mining house, Vedanta Resources (LON:VED).

A subscription agreement also provides Caitlyn with a frontline opportunity to participate in a project development funding package structured by Azumah.

If Caitlyn decides to not participate, it has agreed not to use its shareholding to block progress of the funding or any related corporate transaction.

An anti-dilution provision allows Caitlyn to maintain its 13% equity holding for the next 12 months and a standstill undertaking prevents Caitlyn exceeding a 19.99% holding for 3 years.

Azumah recently increased Ore Reserves and Mining Inventory to over 650,000 gold ounces, underpinning an initial seven year mine life for the proposed 100,000 ounce per year operation.

The project is already substantially de-risked with mining leases granted, grid power to site, easily accessible water, sealed roads and community support.

There is also the untapped prospectivity of Azumah’s 2,800 square kilometre licence holdings.

In late January, Azumah entered into an innovative alliance with Ausdrill whereby it will gain funding via a convertible note.

Ausdrill will invest $2 million in Azumah via a two year unsecured converting note which Ausdrill may convert into Azumah shares at $0.05.

At the time, Azumah was trading just above $0.03.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

The leases are for a term of 15 years and encompass the Kunche and Bepkong deposits, where Azumah’s proposed 1.2 million tonne per year gold plant will be sited, and the Julie deposit, 80 kilometres to the east.

Granting of the mining leases represents another milestone in de-risking and advancing Azumah’s Wa Gold Project to development ready status and planned production in 2016.

Combined with the provision of new grid power infrastructure and the issue of water extraction licences, the grant of the Mining Leases underscores the Ghana Government’s strong support for the project.

Importantly, the grant of the Mining Leases paves the way for Azumah to formally commence its application to the Ghana Environmental Protection Authority for an environmental permit.

As part of this process, Azumah is updating a previously lodged draft Environmental Impact Statement.

GR Engineering Services is managing a feasibility study for the project that is on-track for completion this year.

In late January, Azumah entered into an alliance with mining services company Ausdrill (ASX:ASL) whereby it will gain funding via a convertible note.

Ausdrill invested $2 million in Azumah via a two year unsecured converting note which Ausdrill may convert into Azumah shares at $0.05.

At the time, Azumah was trading just above $0.03.

And in November last year, whilst trading at $0.025, AZM completed a $1 million placement at $0.05 to Caitlyn Limited, a private investment company associated with Indian industrialist Mr Agnivesh Agarwal.

Agarwal is managing director of United Arab Emirates based gold refiner, Fujairah Gold FZE, in turn a wholly-owned subsidiary of the Indian mining conglomerate, Vedanta Resources (LON:VED).

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>Mon, 28 Jul 2014 12:00:00 +1000http://www.proactiveinvestors.com.au/companies/news/149946/azumah-resources-clinches-gold-leases-in-ghana-56537.htmlhttp://www.proactiveinvestors.com.au/companies/news/149945/azumah-resources-shares-on-the-up-following-gold-price-and-placement-premiums-52940.html
Azumah Resources (ASX:AZM) shares have soared on the back of multiple share placements at premiums to its prevailing share price, coupled with a possible reversal to the previously downtrending gold price.

Its shares galloped to an intraday high of $0.056 today, before retracing, up from lows of $0.021 in mid-December 2013.

In late January, Azumah entered into an innovative alliance with mining services company Ausdrill (ASX:ASL) whereby it will gain funding via a convertible note.

Ausdrill will invest $2 million in Azumah via a two year unsecured converting note which Ausdrill may convert into Azumah shares at $0.05.

At the time, Azumah was trading just above $0.03.

And in November last year, whilst trading at $0.025, it completed a $1 million placement comprising 20 million new shares at $0.05 to Caitlyn Limited, a private investment company associated with Indian industrialist Mr Agnivesh Agarwal.

Agarwal is managing director of United Arab Emirates based gold refiner, Fujairah Gold FZE, in turn a wholly-owned subsidiary of the Indian mining conglomerate, Vedanta Resources (LON:VED).

Azumah is focused on the exploration and development of the 3,100 square kilometre Wa project, which contains a JORC mineral resource of over 2 million ounces of gold.

The company also holds a 15.5% strategic stake in neighbouring junior explorer, Castle Minerals (ASX:CDT), which controls 11,000 square kilometres of prospective ground in the region.

Azumah last traded at $0.045 and is capitalised at around $17 million. ]]>Tue, 18 Feb 2014 17:44:00 +1100http://www.proactiveinvestors.com.au/companies/news/149945/azumah-resources-shares-on-the-up-following-gold-price-and-placement-premiums-52940.htmlhttp://www.proactiveinvestors.com.au/companies/news/149944/azumah-resources-strikes-2m-funding-deal-with-ausdrill-limited-52233.html
Gold company Azumah Resources (ASX:AZM) has entered into an innovative alliance with mining services company Ausdrill (ASX:ASL) whereby it will gain funding via a convertible note.

Ausdrill will invest $2 million in Azumah via a two year unsecured converting note which Ausdrill may convert into Azumah shares at $0.05 per share anytime prior to expiry.

Currently, the Azumah share price is $0.033.

Azumah is looking to develop the advanced the 2.2 million ounce Wa Gold Project, in north west Ghana which has a Measured and Indicated Resource of 1.4 million ounces grading 1.8 grams per tonne gold.

An update of the Feasibility Study and Mineral Reserves is underway following substantial Mineral Resource increases. The funds invested will be applied principally to the completion of the revised Study.

Under the alliance the parties have undertaken to work together on a collaborative and transparent basis to optimise the mining components of the Project.

Ausdrill is a leading Perth-based contract mining and services group with revenue of over A$1.1 billion in FY2013.

Azumah has the option to repay the note on expiry (if not converted by Ausdrill at $0.05) and pay periodic interest (8%pa) in cash or with new shares to be issued based on the Azumah share price at the time.

Azumah also has the right to require conversion prior to expiry at $0.05 if the 30 day volume average weighted price (VWAP) for Azumah shares is above $0.075.

If Ausdrill was to convert its note at $0.05, it would hold a 10% interest in Azumah making it the Company’slargest single shareholder.

The alliance with Ausdrill follows the recent $1.0 million placement at $0.05 to Indian industrialist Agnivesh Argawal through his wholly owned Caitlyn Limited and together takes cash reserves for Azumah to $5.5 million.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>Tue, 28 Jan 2014 09:40:00 +1100http://www.proactiveinvestors.com.au/companies/news/149944/azumah-resources-strikes-2m-funding-deal-with-ausdrill-limited-52233.htmlhttp://www.proactiveinvestors.com.au/companies/news/149943/azumah-resources-bags-1-million-at-100-premium-for-wa-gold-project-ghana-50537.html
Azumah Resources (ASX:AZM, TSX:AZR) has completed a $1 million placement comprising 20 million new shares at $0.05, with funds to be directed towards a revised at it Wa gold project in Ghana.

The placement was made to Caitlyn Limited, a private investment company associated with Indian industrialist Mr Agnivesh Agarwal, who will now hold a 5.6% interest in Azumah and become its third largest shareholder.

Azumah is focused on the exploration and development of the 3,100 square kilometre Wa project, which contains a JORC mineral resource of over 2 million ounces of gold.

The company also holds a 15.5% strategic stake in neighbouring junior explorer, Castle Minerals (ASX:CDT), which controls 10,000 square kilometres of prospective ground in the region.

Azumah is currently capitalised at around $8 million.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>Tue, 26 Nov 2013 11:20:00 +1100http://www.proactiveinvestors.com.au/companies/news/149943/azumah-resources-bags-1-million-at-100-premium-for-wa-gold-project-ghana-50537.htmlhttp://www.proactiveinvestors.com.au/companies/news/149942/azumah-resources-intercepts-high-grade-gold-at-wa-project-in-ghana-44422.html
Azumah Resources (ASX:AZM; TSX:AZR) has delivered high grade gold intercepts from drilling that are likely to result in a material increase in Mineral Reserves from the Wa East area in Ghana.

These included 3 metres at 15.59 g/t gold from 73 metres, 2 metres at 4.37 g/t gold from 84 metres and 5 metres at 12.69 g/t gold from 68 metres from RD/diamond drilling at Julie East.

These are part of the Wa gold project in northwest Ghana where Measured and Indicated resources have increased to 1.36 million ounces of gold and Inferred resources to 0.85 million ounces of gold.

The conversion to mineral reserves is likely to occur when Azumah hands down its Feasibility Study update later in the year.

Azumah also reported the results of drilling at the Josephine North prospect which has successfully tested for mineralisation below a 400 metres long zone of artisanal workings.

The RC drilling at the Josephine North prospect saw intercepts including 14 metres at 2.18 g/t gold from 28 metres and 5 metres at 1.87 g/t Au from 56 metres.

The Josephine North results highlight the opportunity to define additional mineralisation in the Wa East region and to lift resources that already comprise more than 50% of the Wa Gold Project inventory.

An update of the Feasibility Study and Mineral Reserves is underway following substantial increases in resources.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

]]>Thu, 13 Jun 2013 11:20:00 +1000http://www.proactiveinvestors.com.au/companies/news/149942/azumah-resources-intercepts-high-grade-gold-at-wa-project-in-ghana-44422.htmlhttp://www.proactiveinvestors.com.au/companies/news/149941/azumah-resources-extends-ghana-gold-mineralisation-35906.html
Azumah Resources (ASX:AZM) has struck more gold at its Wa project in Ghana, with mineralisation at the Julie deposit extending outside of the current resource envelope and below the base of the current shallow pit designs.

The new Julie drill results, along with early stage exploration results from Collette and Kjersti prospects confirm Wa's potential as a highly prospective gold mineralisation zone, with further mineral reserves being defined in the area.

The latest holes at Julie have been drilled into two high grade zones, over 1 kilometres long. Notable intercepts include:

An updated mineral resources estimate is underway for all key Wa gold project deposits, which now stands at a combined 1.02 million ounces measured and indicated and 0.66 million ounces inferred.

The updated mineral reserve and feasibility study, likely by end of first quarter next year, will include results from an additional 58000 metres of infill and extensional drilling undertaken since the last resource estimate.

The latest drilling results from the Julie deposit confirm the resource potential at the prospect, which is currently declared at 386,000 ounce Measured and Indicated and 181,000 ounce inferred.

The Collette deposit drilling also returned intercepts including 14 metres at 1.53 grams per tonne and 4 metres at 3.51 grams per tonne.

Follow up drilling at Kjersti prospect returned mineralisation at 20 metres at 2.21 grams per tonne and 3 metres at 4.12 grams per tonne.

Drilling is to start on the Josephine prospect to evaluate the gold anomalies.

The company also has a 17% strategic investment in neighbouring Castle Minerals (ASX:CDT) and has a cash position of A$16 million.

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]]>Thu, 15 Nov 2012 10:00:00 +1100http://www.proactiveinvestors.com.au/companies/news/149941/azumah-resources-extends-ghana-gold-mineralisation-35906.htmlhttp://www.proactiveinvestors.com.au/companies/news/149940/azumah-resources-set-to-grow-12-million-gold-ounces-at-wa-in-ghana-11163.html
An aggressive drilling campaign has been designed to build on the 1.2 million gold ounce resource at the Azumah Resources (ASX: AZM) Wa Gold Project in Ghana.

Reverse circulation and aircore drilling will focus on the discovery of additional shallow, high-margin resources close to the existing Kunche and Bepkong resources, with the programe including 100,000m of drilling to be completed by the end of 2010, with a further 150,000m by mid-2011.

The Wa Gold Project contains a JORC compliant indicated and inferred resource of 1.2 million ounces of gold, including 516,000 ounces at the Kunche deposit, 350,100 ounces at the Julie deposit and 212,000 ounces at Bepkong.

Azumah's aim is to upgrade this initial resource base to underpin plans to establish an initial 70,000 ounce a year operation, with the goal to expand this to over 100,000 ounces annually.

Stephen Stone, managing director, said “we have achieved a great deal at Wa in a short period but we believe that we have tapped only a small portion of its tremendous prospectivity.

“The recently acquired high-resolution aeromagnetic survey and ground geophysics datasets highlight this and are a real game-changer for Azumah enabling us to place our large pipeline of targets into a much better structural context and to generate new areas of interest.”

Last month Azumah announced an upgrade in gold to 410,700 ounces at the Wa Gold Project in Ghana.

]]>Fri, 15 Oct 2010 07:46:00 +1100http://www.proactiveinvestors.com.au/companies/news/149939/azumah-resources-in-a-trading-halt-to-raise-capital-10852.htmlhttp://www.proactiveinvestors.com.au/companies/news/149938/azumah-resources-raises-a111m-for-ghana-gold-project--7537.html
Azumah Resources (ASX: AZM), a West African gold company, has arranged an institutional placement totalling approximately A$11.16 million (before expenses) through a heavily demanded share placement as part of its push to fast track exploration and development of its 100%-owned Wa Gold Project in north-west Ghana.

The capital raising, comprising an issue of 27.9 million shares at 40 cents per share, has been allocated to North American and Australian institutional investor clients of Toronto based ClarusSecurities Inc., Melbourne/Sydney/Hong Kong based BGF Equities and Perthbased Blackswan Equities Limited.

Pursuant to the 15% allowance under ASX Listing Rules the placement does not require shareholder approval.

Azumah said this capital raising, at twice the price of the previous raising last October, is consistent with the company’s strategy to broaden its shareholder base and introduce North American institutional investors onto its share register.

Stephen Stone, managing director, said "the funds raised will bolster Azumah’s working capital to over A$16 million. The funds will be primarily directed towards a major expansion of exploration and drilling focused on growing the company’s present 1.1Moz Indicated and Inferred Mineral Resource." ]]>Fri, 28 May 2010 12:55:00 +1000http://www.proactiveinvestors.com.au/companies/news/149938/azumah-resources-raises-a111m-for-ghana-gold-project--7537.htmlhttp://www.proactiveinvestors.com.au/companies/news/149937/azumah-resources-raises-424m-to-accelerate-development-of-wa-gold-project-in-ghana-3247.html
West African gold company Azumah Resources (ASX: AZM) has raised $4.24 million through an oversubscribed share placement as part of its push to fast-track exploration and development of its Wa Gold Project in north-west Ghana.

The news saw shares in the company rise 3.7%, or 1c, to 28c at 11.44am this morning.

The share placement, comprising 21.2 million shares at 20 cents per share, has been made to Australian and overseas institutional and sophisticated investor clients of Perth-based Blackswan Equities eastern states-based BGF Securities.

Pursuant to the 15% allowance under ASX Listing Rules, the placement does not require shareholder approval.

The funds raised will bolster Azumah’s working capital to over A$9 million ahead of a largescale, 41,000m drilling programme aimed at increasing the company’s previously outlined 750,000oz Indicated and Inferred Mineral Resource.

Azumah managing director Stephen Stone said the capital raising comes at a pivotal time in Azumah's development as the company embarks on a major new drilling programme designed to help it reach the critical mass resource base required to establish the first stand-alone commercial mining operation in north-west Ghana.

The raising would also help to ramp-up development studies at the company's Wa Gold Project.

“Based on our current resources, Azumah has an Enterprise Value of just A$41 per resource ounce of gold and, while this has been increasing of late, the company is still fundamentally and relatively undervalued against its West African explorer peers,” Mr Stone said.

He said the drilling programme was scheduled to commence shortly and would act as a priority test for extensions to the Kunche and Bepkong discoveries.

"It will also test for new mineralisation in the immediate vicinity of these deposits, investigate priority targets along the Kunche-Bepkong mineralised structural corridor and delineate maiden resources at the Julie and Collette prospects," Mr Stone said.

The first results are expected in early December and newsflow will continue well into 2010.

Maiden JORC Code mineral resource estimates for Julie and Colette are expected to be available early in the next Quarter.

Preliminary open pit optimisation and mine design studies based on the mining of the Kunche and Bepkong deposits over an initial 4.5 years indicate that the Wa Gold Project is already capable of generating robust cash operating margins and a healthy overall cash operating surplus.

Mr Stone said Azumah’s immediate objective was to delineate sufficient additional resources during the forthcoming and subsequent drilling programmes to underpin a decision in 2010 to develop a mining operation.

Azumah’s licences encompass over 150 strike kilometres of prospective Birimian aged greenstone terrain, the same rocks that host many of the world-class gold deposits in West Africa and Ghana.

Reconnaissance soil sampling has returned very widespread gold anomalism within Azumah’s 3,200km2 tenure but only a relatively limited area has ever been drilled.

The drilling campaign will focus on extending existing resources at the Kunche and Bepkong deposits where the company has already outlined a 750,000 oz Indicated and Inferred Mineral Resource.

Azumah will test for new discoveries in the immediate vicinity of these deposits and will investigate compelling targets along the Kunche-Bepkong mineralised structural corridor.

It will also in-fill shallow high-grade mineralisation outlined at the Julie and Collette prospects to enable maiden resource estimates to be made for these zones, and it will test numerous other high-priority ranked targets throughout the company’s 3,100 square kilometre tenure.

“We have committed to substantially increasing the momentum of exploration activity and our development studies at the Wa Gold Project to move closer to achieving our core objective of establishing the first stand-alone commercial gold mining operation in the emerging north-west Ghana gold province,” said Azumah managing director Stephen Stone.

Work will commence shortly and will comprise 19,000 metres of reverse circulation (RC), 21,000 metres of aircore and 1,000 metres of diamond drilling.

The diamond drilling will provide core samples for the geotechnical and metallurgical test work components of the company’s preliminary development studies. These are gathering momentum following the recent release of positive open pit optimisation studies and preliminary mine designs that, subject to additional resources being defined, are planned to move seamlessly into more definitive mining and engineering studies in the first half of next year.

Azumah’s licences in northwest Ghana encompass over 150 strike kilometres of prospective Birimian aged greenstone terrain, the same rocks that host many of the world-class gold deposits in West Africa’s and Ghana.

Reconnaissance soil sampling has returned very widespread gold anomalism within the Company’s tenements but only a relatively limited area has ever been drilled.

Based on a one million tonne per annum mining operation and gravity / CIL processing plant, the desk top study revealed the WA Gold project in Ghana, could recover 300,000 ounces of gold from existing Kunceh and Bepkong resources.

This would generate an operating surplus of $138 million.

Total cash operating costs are estimated to be A$593/oz (US$483/oz) of gold recovered, reflecting the advantages of the close proximity of the Kunche and Bepkong Resources.

And the ability to access higher-grade, low strip ratio, near-surface oxide mineralisation at an early stage of operations.

“On the strength of these robust results, we have commenced Scoping Studies and will accelerate drilling programmes to establish the critical mass of gold resources required to support what would be the first stand-alone commercial gold mining and processing operation in the emerging north west Ghana gold province,” Mr Stone added.

The placement generated strong support and has was heavily oversubscribed. Macquarie Bank is participating in the placement and increasing it‟s equity in Azumah to 15.26%.

The funds will be used to accelerate exploration, resource definition and project development at Azumah‟s highly prospective Wa-Lawra Gold Project in Ghana and, subject to the successful completion of it's acquisition from Crew Gold Corporation, the Wa Project.

The 100% owned Wa-Lawra Gold Project has a defined an Indicated and Inferred mineral resource inventory of 754,000 ounces.

Six holes will test for near-surface, north and south extensions to the 212,000 ounce gold Bepkong Indicated and Inferred Mineral Resource. Two 100m holes are also planned to investigate a new, high-priority, north-north-west trending target 400m west of the 516,000 ounce gold Kunche Indicated and Inferred Mineral Resource.

A recent desktop review of historical geophysical datasets showed that mineralisation at Kunche is associated with ‘high chargeability and apparent resistivity responses’. The new target has similar geophysical characteristics, supporting anomalous geochemical soil samples and anomalous mineralisation in a shallow depth drill hole.

About Azumah Resources

Azumah has a resources of 754,300 JORC Code compliant Mineral Resource inventory at Wa-Lawra Gold Project in north-west Ghana. 516,000oz and 212,000oz Indicated and Inferred Mineral Resources at Kunche and Bepkong. 100%, 2,800km2 licences hosting 110km of prospective Birimian greenstone belt. The company has a pipeline of drill targets and a management team with successful exploration history. The company has a market capitalisation per resource ounce well below industry benchmarks.